Dollar pullback, higher than expected Eurozone PPI keeps EUR/USD supported above $1.16 mark

The Euro surged to around $1.1613 following a fresh Eurostat report showing Eurozone Producer Price Index (PPI) inflation jumped 1.6% month-on-month in July. This will typically drive a more aggressive stance from the European Central Bank (ECB) at its upcoming monetary policy meeting. The single common currency rebounded from a two-week low on Thursday tracking a notable pull back in dollar as oil halted recent rally on signs of easing geo-political concerns. President Trump said the latest attacks on Iran would be short-lived, easing inflation concerns and reducing safe-haven demand for the greenback. In the Eurozone docket, Eurozone PMI data have failed to boost confidence in the Eurozone's economic outlook. S&P Global Eurozone Composite PMI came in at 52.0 in August 2026, broadly in line with the preliminary estimate of 52.1 and little changed from Julys eight-month high. However, Eurozone Services PMI was inched down to 51.6 in August of 2026 from 51.7 in the previous month. German Services PMI has been revised up to 49.7 in August from previous estimations of 48.5, but still at contraction levels, below the 50 mark. The pair is currently seen supported at $1.1611, up 0.16% on the day. On the NSE, EUR/INR futures are holding around 110 mark.

 

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